Natural resource funds have fared poorly over the past decade, as the
global economy continues to recover from the monetary crisis and consequent
recession. The Natural Resources Equity category as a whole has turned in an average annualized negative
rate of return over the period. Some funds, of course, with able management, consistently
buck the trend. One such is the FundGrade A+ Award-winning
Fidelity Global Natural Resources Fund, which has managed to pull off category-beating positive returns over the
same period.

Preferred share fixed-income funds are on a roll these days, after a
calamitous 2015. The average return for the 13-fund category for the
one-year period ended July 31, 2017, was a healthy 16.1%, compared with
-11.93% for calendar year 2015. Of course, 2015 was bad for equities as
well (the overall Canadian Equity category averaged -6.8% for that year,
but is up 5.8% for the year through the end of July 2017). But the reasons
for the two turnarounds were largely unrelated, according to Jeff Herold, co-manager (with Dax Letham and Ian Clare) of Toronto-based J. Zechner Associates, which sub-advises
NGAM Canada’s
Natixis Canadian Preferred Share Fund (NGAM is an affiliate of Natixis Global Asset Management SA in Paris,
France).

The sector equity category is a bit of an oddball, but a high-performance
oddball. Consisting primarily of science/technology and health-related
funds, this 19-member group has generated the best 3-, 5- and 10-year
average annual compounded returns through the end of May (17.2%, 20.0%, and
9.4% respectively) of any fund category. And of course, some sector funds
fared much better. The
Fidelity Global Technology Fund is a case in point.

One might be forgiven for believing that in light of all its recent
problems, Europe would be a dangerous place to invest these days. After
all, there have been serious and seemingly unresolved economic problems in
Greece, Italy, and to a lesser extent Portugal and Ireland. There’s been
Brexit, with concomitant concerns about the continuing viability of the
rest of the eurozone. Now a war of words has erupted between the U.S. and
German leaders.

What with all the government noise about infrastructure in Canada and the
U.S. (as well as points abroad), it’s no surprise that many eyes are
focusing on a new fund category recently adopted by the Canadian Investment
Funds Standards Committee (CIFSC), Global Infrastructure Equity Funds.

The Asia Pacific markets have seen their share of ups and downs in recent
years, and that trend is likely to continue for the time being, according
to
William Lam, U.K.-based portfolio manager of the FundGrade A+ Award-winning
Invesco Indo-Pacific Fund. Still, prices are attractive, and earnings are picking up, so there’s
good potential for investors seeking diversification through broad Asian
exposure.

Last year turned into a rough haul for most real estate equity funds,
following several years of double-digit returns. While the category’s 3-
and 5-year average annual compounded returns through December 2016 were
11.0% and 12.1% respectively, calendar 2016 returns averaged a paltry 1.0%,
and the last six months of the year saw real estate equity funds lose
-1.1%. So what happened and, more importantly from an investor’s
perspective, what does this downturn bode for the future of real estate?

Difficult times call for different solutions. Given the downside volatility
of the resource sector over the past few years,
Jason Mayer
of Sprott Asset Management LP in Toronto, lead portfolio manager (with
Paul Wong) of the
Sprott Resource Fund, has adopted a two-pronged strategy that combines both top-down and
bottom-up components, with some pretty remarkable results.

It may seem a topsy-turvy investment world out there these days, but slow and steady can still win the race, as seen from the performance of the Black Creek Global Leaders Fund. While funds in the Global
Equity category averaged a less-than-impressive 2.2% return for the 12 months through the end of October, and a 10-year average annual compounded return
not much better, at 4.1%, the Black Creek fund returned 12.2% and 7.1% respectively for those same time frames. For some insight into Black Creek’s style,
I spoke with Director of Global Equities, Heather Pierce.

It’s been a tough few years for energy- and resource-heavy Canadian equity markets, and while results have been more positive over the past six months or
so, global demand still remains uncertain. Accordingly, Canadian equity investors seeking some diversification without incurring the risks of extensive
foreign exposure, might want to consider Quebec-oriented Canadian equity funds such as the Investors Quebec Enterprise Fund as an alternative.

Amidst the spotty economic news emanating from most points of the globe these days, it’s always nice to find a bright spot: The improving performance of
emerging markets funds. While the category lost money overall in 2015, average fund returns for the six-month period ended August 31, 2016, were a very
encouraging 17.4%, bringing the average 1-year return through to the end of August to a respectable 9.6%. Does this upturn portend a more extended recovery
globally?

When it comes to investing in precious metals funds, what a difference a year can make. For the 12-month period ended July 31, 2015, the category’s average
one-year return was a dismal -31.8%. For the 12-month period through July of this year, the category’s one-year average was a stunning 114.7%. And precious
metals funds have surged as a consequence, posting triple-digit gains over the past 12 months. The Sprott Silver Equities Class A, for example, gained 147.2%
in the 12 months to July 31.

What with all the crazy stuff going on globally these days, most investors want a secure haven for their core savings. But with real, inflation-adjusted
interest rates at or below zero in many countries, investors are looking for more than traditional fixed-income assets in order to avoid losing money.
Enter the CI Portfolio Series Income Fund – a fund
comprising several other CI funds, including a touch of conservative equities to bolster overall returns. The mix is a consistent winner for the fund, with
four consecutive annual FundGrade A+™ Awards to its credit.

“It’s a very simple process,” says Brian Berghuis
, portfolio manager at T. Rowe Price in Baltimore, Maryland, and lead manager of the TD U.S. Mid-Cap Growth Fund, in speaking about the stock
selection process that has seen the fund maintain top-tier performance since its inception in 1993: Most recently, 3-, 5-, and 10-year average annual
compound returns through the end of May of 21.0%, 16.8%, and 10.3% respectively. And that performance yielded a monthly FundGrade™ A-grade and the annual FundGrade A+™ Award for 2015.

The energy sector has certainly had a rough time ever since the November 2014 OPEC meeting when Saudi Arabia refused to cut oil production in order to
stabilize falling prices. Some energy company shares lost as much as 50% of their value as prices dropped throughout 2015 and into 2016; the average return
from the energy equity fund category for the year ended March 31, 2016, was a dismal -22.8%. Are things about to turn around?

What can you say, without using superlatives, when two of the three top-performing funds in the Canadian small/mid-cap category over the past 10 years, and three of the top five performers in the category over the past five years, are all managed by the same individual? Hard to believe, but Jeff Mo, portfolio manager at Mawer Investment Management, has done just that. And racked up a long list of FundGrade A+ Awards™ to boot.

Bond funds are supposed to be dull. Slow, steady returns. Something you turn to when you need a “safe haven.” So how has the Signature Global Bond Fund managed to generate annualized returns of 7.0%, 8.1% and 6.5% over 1-, 3- and 5-year time frames respectively through January 2016, and do it primarily with low-coupon government bonds? And what about that 2.8% return for the month of January alone?

At a time when stock markets are tumbling and interest rates spell a loss in real terms, there aren’t many safe places left to stash your cash. Despite having a foot in both troubled camps, however, the FundGrade A-ratedFidelity Income Allocation Fund is still managing to turn healthy returns for its unitholders – a clear case of the whole being more than the sum of its parts.

What tales the numbers tell sometimes. Fundata performance statistics for most time frames through October 2015, from one month to ten years, show that U.S. equity funds ranked near the top among all 52 fund categories. Index funds, like the CIBC NASDAQ Index Fund and the Scotia NASDAQ Index Fund, both with the Fundata FundGrade® A Rating, reaped the benefits with top-performance in the sector. While that’s partly a currency story for Canadians, the numbers also seem to be a testament to the strength and resiliency of our southern neighbor’s business sector.

China’s economy, the powerhouse of Asia (and purveyor to much of the world), continues slowing in the wake of a big stock market crash this past June. Europe is now embroiled in a growing refugee crisis, in the wake of a drawn-out Greek/European Union economic and fiscal standoff. Little wonder that equity markets almost everywhere have taken a hit lately. And equity funds have largely reflected this volatility. But there are some exceptions, notably the multi-year FundGrade A+ Award-winner (2011-2014) Investors International Small Cap Fund.